Mergers & Acquisitions

Mobile, Alabama Business Brokers | M&A

Mobile, Alabama, 36602

Call Us: (888) 693-7834

Who We Are

Morgan & Westfield, Business Brokers of Mobile, Alabama. Most business owners find the process of selling a business to be long, complex and somewhat overwhelming. As a business owner, you probably have never gone through a business sale before, so some things about this process may appear unfamiliar to you. This unfamiliarity coupled with the pressure to have a successful sale is what makes business sales so challenging for an average business owner.

But when you sell your business through the Mobile, Alabama, office of Morgan & Westfield, our team of professional business advisors can guide you through the process and even complete many aspects of the sale for you. To understand how professional guidance can benefit you in selling your business and how we can make the sales process easier for you, contact our Mobile, Alabama office today.

Determining Your Business’ Value

One of the most important aspects of the sales process is valuing your business. Without an accurate valuation of your business, you cannot determine an asking price or properly sell your business. An inaccurate valuation of your business can have devastating consequences, causing you to over- or underprice your company and thus making a successful sale less likely. Given these stakes, properly valuing your company is clearly a vital aspect of the sales process.

However, business valuations are somewhat subjective. Countless industry experts and professional brokers have written books detailing various business valuation methods. Each method can come to a slightly different conclusion about your business’s value, and the same can be said even when different brokers utilize the same method. This is why it is important to remember that business valuations are an estimate of your company’s market value .

Ultimately, your business’s true value can only be determined by the market and how much a buyer is willing to offer.

Valuing Your Business with the Cash Flow Method

A company’s value can be estimated through various methods. At the Mobile, Alabama, office of Morgan & Westfield, we use the cash flow method.

The cash flow method is one of the most accurate and effective methods for valuing a business. This valuation method appraises your company’s value through the lens of your company’s true profitability. Meaning, this method considers not just your actual profits but also the discretionary expenses that will normally decrease your profits.

Specifically, this method considers factors like depreciation , interest expense , owner’s salary, as well as any other discretionary expenses. Including all of these factors and valuing your business by its actual cash flow, rather than just its profits, enables us to more accurately estimate your business’s market value.

Ultimately, buyers are purchasing a business for its cash flow, which is why buyers find this valuation method to be acceptable.

Discretionary expenses can vary based on the choices that you make as an owner. By including these expenses into your business’s cash flow analysis, we are able to more precisely estimate the true cash flow of your business. This is then combined with specific multipliers to determine your business’s optimum selling price.

Once we have an approximation of your business’s optimum selling price, we are able to recommend a pricing range so that you can choose an asking price.

The cash flow method of business valuations focuses exclusively on your company’s cash flow. This method does not consider your business’s assets because they have limited value. Your business’s cash flow, on the other hand, is more dynamic and continuous. For as long as the business is running, there will be cash flows that continuously impact the company’s value to ownership.

This is not the case with assets, as financially capitalizing on an asset can only happen once. And as assets depreciate, their value will only go down, eventually reaching a point where they no longer have any impact on your company’s value.

So rather than considering assets, the cash flow method simply takes the cash flow that our advisors calculate for your business and multiplies that by multiplier factors that account for some of your business’s specific qualities. Some of these factors may include:

  • If you have recently released or will soon be releasing a new product line.
  • If your business has a diverse customer base (one type of customer does not make up over 10% of your overall customer base).
  • Your position in your local market relative to your competition.
  • Your overall market share.
  • The ease with which market share can be gained and your customer base can be increased.
  • The ease with which your location and leased property can be retained by your buyer.
  • The overall condition of your business both tangible and intangible.
  • The risk of key personnel leaving as a result of the sale, and the ease with which a new owner will be able to fulfill your role in the business’s daily operations.

Each of these factors has a multiplier factor attached to it, and how your company performs based on these factors will determine how each of these factors impacts your company’s value. For example, a competitive company with new products and a growing customer base will have its cash flow multiplied by all of these factors, and the company’s estimated value will then increase. However, if a company is losing market share and relies on a small customer base, then the company’s value will decrease when these factors are applied to the cash flow.

Given the complexity of business valuations and the high stakes involved in making an accurate valuation, having your business appraised by a professional is always the best move. To learn more about how our team can determine your business’s value, contact the Mobile, Alabama office of Morgan & Westfield on 888-693-7834.

Business Advisors of Southern Alabama

At the Mobile, Alabama, office of Morgan & Westfield, our team of professional business advisors is dedicated to helping the business owners of our local communities as they navigate the sales process. We are particularly dedicated to working with the business owners of Southern Alabama and Southern Mississippi, including business owners in the communities of:

  • Alabama: Mobile, Theodore, Tillmans Corner, Alabama Point, Bayou La Batre, Union Church, Prichard, Chickasaw, Saraland, Satsuma, Wilmer, Mauvilla, Georgetown, Gulfcrest, Creola, Axis, Bucks, Movico, Mount Vernon, Citronelle, Calvert, Malcom, Tensaw, Stockton, Hurricane, Blakeley, Spanish Fort, Daphne, Malbis, Fairhope, Barnwell, Foley, Elberta, Summerdale, Robertsdale, Loxley, Rosinton, Stapleton, Pine Grove, Dyas, Gateswood and Bay Minette.
  • Mississippi: Vernal, Crossroads, Lucedale, Agricola, Big Point, Escatawpa, Moss Point, Gauthier and Pascagoula.

Each year, our business advisors facilitate hundreds of sales within these communities and the neighboring communities that makes up Alabama’s Mobile County, Baldwin County and Washington County, as well as Mississippi’s Jackson County, George County and Greene County.

Our considerable experience throughout this area qualifies our business advisors to facilitate the sale of any business in the Southern Alabama and Southern Mississippi region.

If you are a business owner in this area and are considering selling your business, contact us now to learn more about how we can help you in selling your business.

Past Transactions - Business Sales or Appraisal

Following is a representative list of past transactions we have worked on:

Ambulance Service
Private Households
Vending Machine Route
Automotive Parts Dealer
Private School
Jimmy John’ Gourmet
B2b Wholesale
Produce Market
Janitorial Distributor
Baby Products Retailer
Quick Lube
Liquor Store
Creative Artists
Quick Print Business
Little Caesar’ Pizza
Café
Rope, Cordage Manufacturing
Motion Picture Exhibition
Day Care
Route Distribution Business
Motion Picture Production
Domestic Representation
Rubber Manufacturer
Non-Metallic Mineral Mining
Embroidery Shop
Spa
Non-Metallic Manufacturing
Estate Planning Services
Stainless Steel Food
Onshore Aquaculture
Fabric Store
State Government
Ophthalmic Practice
Furniture Retailing
Tee Shirt Shop
Hobby Shop
Grocery Product Distributor
Trade College
Internet Publishing
Glazier
Trailer and Motor Retail
Ice Cream
Huntington Learning Center
Tyre Manufacturing
UP Store

Our Process

How can Morgan & Westfield help you sell your business?

Schedule a Consultation

Selling your business is the apex of your financial life. After investing your blood, sweat, and tears into an enterprise that has provided for you, your family and your employees, the moment has finally come for you to start a new chapter in your life.

Schedule a Free Consultation

Client Stories

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The Complete Guide to Selling 
a Business: A Roadmap to the Successful Sale of Your Business

The Complete Guide to Selling 
a Business: A Roadmap to the Successful Sale of Your Business

Written by Jacob Orosz, Founder of Morgan & Westfield

You could spend a lifetime figuring out how to successfully sell your business and still end up confused or clueless. What if you can stop the guesswork and start taking action now? With two decades of experience, Jacob Orosz puts together in this book the best tips and strategies he has used in helping hundreds of business owners successfully sell their companies.

Read more

Hundreds of companies have trusted Morgan & Westfield, from franchises, small independent businesses to large corporations.